London-listed South African-led Randgold Resources has made a significant new discovery in Senegal in West Africa, CEO Dr Mark Bristow confirmed on Thursday.

Bristow said that the new discovery at Massawa would certainly be larger than Randgold Resources' resource at Tongon in Côte d’Ivoire, where Randgold Resources would turn the first sod for its third gold mine in Africa, its first two being at Morila and Loulo in neighbouring Mali.

He said that the company had been developing the multimillion-ounce prospect for eight years with an all-Senegal staff.

New infrastructure being constructed in Senegal would add to Massawa’s economic feasibility.

A new road being built had already passed Massawa, which was located 100 km west of Randgold’s new Loulo underground gold mine.

“We’re targeting a resource statement for March next year,” said Bristow.

Mineralisation was up to surface and drilling had been to a vertical depth of 180 m.

Continued diamond drilling had so far revealed significant grades and widths within two zones, totalling 3,1 km out of the 6,5 km of strike tested to date.

“Results also confirmed good continuity in geology and gold mineralisation which supports our view that Massawa is potentially a multi million ounce project and validates our commitment to creating value through exploration and development,” Bristow said.

The mineralisation was open in all directions, with sampling indicating extension of the mineralised zones to at 2 km northwards.

Randgold Resources increased its net profit for the six months to June to $38,4-million. Net profit of $20,2-million for the second quarter was up 11% on the previous quarter and up 196% on the corresponding quarter in 2007.

The profit increase was attributable to higher production at the Loulo and at the Morila joint venture, also in Mali, where Randgold took over management control earlier this year.

Production at Loulo increased 11% quarter on quarter and at Morila by 13%. While total cash costs at both operations rose, unit costs were reasonably well contained through increased production and an intensified focus on unit consumption measurements.

At the Tongon project in Côte d’Ivoire, currently in the early stages of development as the company’s third mine, continuing infill drilling and follow-up optimisation studies completed during the quarter had resulted in a further increase of 26% in the reserve, which now stands at more than 3 million ounces. Most elements of the new mine’s infrastructure have been settled and tenders from mining contractors are currently being considered.